SAN MATEO, CA (Hypebot) – Several sources have confirmed that imeem recently received additional funding that will allow it to stay online for at least a few more months. The company has not released an official statement, but it is clear that additional funding will be needed.
Ad supported music sites like imeem have been hit particularly hard in the economic downturn. But imeem has moved aggressively to cut costs by renegotiating some of its streaming fees and seeking new revenue sources. Overseas ringtone sales are emerging as a bright spot in imeem's revenue future according to one source.
COMMENTARY: As of yet, labels and publishers have not shown sufficient desire to lower rates to a point where ad supported music services can survive. One after another sites from Seeqpod to Spiral Frog have become media, fan and sometimes even industry favorites only to run out of cash months later. Spotify is the latest darling. But no matter how strong its funding and clever its founders, how long will it last if the economy doesn't turn?
imeem, iLike, Spotify and very few others have quickly become hubs of legal music activity. Fans gather on there and thus they can be identified, marketed and sold to. If the music industry does not support these sites effectively driving fans underground, it may have lost its last best chance for monetization.